Doubling of build cost for Ukrainians’ modular homes ‘unacceptable’, says PAC chairman

The chairman of the Oireachtas Public Accounts Committee has described the doubling in the cost of building rapid-build modular homes for Ukrainians as “unacceptable”.
The increase in the cost of the modular homes was revealed in the latest report from the State’s spending watchdog, the Comptroller and Auditor General (C&AG). The price rose from an originally estimated €200,000 per residential unit in June 2022 to a final estimated average cost per unit of about €442,000.
Sinn Féin TD Brian Stanley told RTÉ radio’s Morning Ireland there needed to be clarification of the costs of the modular units.
In the case of the units in Rathdowney, Co Laois, the units were 45sq m while a very small house would be 90sq m.
“So these are literally very, very small prefabricated dwellings. And if you look at the ones in Rathdowney the cost per unit was supposed to be €145,000; by the time they were finished they were €345,000 for these 45m sq units – that is unacceptable,” Mr Stanley said.
He pointed out that the escalating costs of the national children’s hospital were over seven to eight years, while in this case, the cost more than doubled in the space of “just over 12 months”.
“That is not acceptable. And we need to get to the bottom of it. And it’s clear to me that the type of contracts being used, this has been clear to me for some time, that what’s being used by the State, the framework agreements and the other type of agreements they are entering into with contractors, are not fit for purpose, particularly for the taxpayer.”
The Office of Government Procurement should explain what had happened, he said, adding it had a role in scrutinising contracts.
The C&AG said in its report on Monday that in June 2024 the State was also facing bills of more than €600,000 for storing manufactured modular units, of which about €300,000 had been paid.
The report also said a credible and long-term use for the units had been seen as key to the rapid-build housing programme representing value for money.
However, it said although the Department of Integration had identified several possible uses for the units after their requirement for Ukrainian beneficiaries of temporary protection was over, “no specific long-term use has yet been determined”.